Mar
9
HuaKang awarded First National Insurance Agency Licence by Chinese Insurance Regulator
Filed Under China, China insurance, Insurance Company, Life Insurance | Leave a Comment
The China Insurance Regulatory Commission (CIRC) has recently granted HuaKang Financial Services Inc. authorisation to consolidate its existing 17 subsidiaries under their subsidiary in Shenzhen, which in turn will allow all these subsidiaries to be upgraded into branches.
HuaKang Financial Services Inc. is the first and largest Chinese life insurance agency. The company was founded in 2006 and is based in Guangzhou, China.
With permission of CIRC, new branches in China can now be setup under the name Shenzhen HuaKang Insurance Agency Co. Ltd. and carry on developing insurance agency businesses, which the company plans to augment to up to a 30% share of the national market, and aiming to float its shares by next year.
According to HuaKang, their market share in the Chinese life insurance agency sector during the first 3 quarters of last year was 25%, and more than 50% market share in the provincial markets of cities such as Shanghai, Guangdong, Jiangsu, Shandong, Zhejiang, Tianjin and Chongqing.
The business strategy for the year 2010 announced by HuaKuang is to remain focused and further develop the suburban markets of first-tier cities in China.
The current 17 subsidiaries of HuaKang are located in Zhejiang, Shandong, Hangzhou, Tianjin, Hebei, Henan, Guangzhou, Hunan, Hubei, Sichuan, Chongqing, Shanghai, Beijing, Anhui and Liaonin.
Insurance Company mentioned:
Huakang is the first nationwide independent insurance intermediary company in China which focus on individual life insurance business,in particular regular life insurance business. Huakang’s nation-wide branches and profesional sales and services teams provide customers personalised, unbiased insurance and financial planning services thanks to its dominating market share and tremendous influence in the insurance intermediary industry. Huakang has won the overall recognition from the Media, competitors and investors. IDG capital and Matrix Partners China have concluded investing RMB500 million into Huakang.
Mar
8
ING Asia Business attracts interest from European Insurers
Filed Under AXA PPP, Allianz, Insurance Company, United Kingdom | Leave a Comment
The high-growth of Asian markets is proving to be a tempting proposition for some European Insurers currently making unsolicited bids for the business of ING in that region. As per comments made by industry analysts it is thought that Zurich Financial Services Group, Allianz and Axa may be among the potential suitors for ING’s Asia insurance unit.
As part of the restructuring deal mandated by the European Union, ING is splitting off of its global insurance operations and an IPO had been the initial preferred route, although they would keep their options open as communicated by a spokesman.
The bailout deal reached by ING with the authorities in the Netherlands was valued at more than GBP 7 billion back in 2008. Under the terms of the bailout package the European Commission regulators demanded ING to sell its insurance business within four years and focus on its banking operations.
There seems to be a growing number of trade buyers interested in targetting plans for IPOs. The announcement of Prudential Plc buying AIA from AIG is a good example of the type of interest some European companies are demonstrating, playing their role as industry consolidators, after emerging relatively unscathed of the financial crisis in insurance.
According to a recent comment by ING’s CEO, there have been several companies interested in acquiring their Asia business, although Zurich Financial, AXA and Allianz all have declined to comment whether they are prospective purchasers.
Insurance Companies mentioned:
ING is a global financial institution of Dutch origin offering banking, investments, life insurance and retirement services serving more than 85 million private, corporate and institutional customers in Europe, North and Latin America, Asia and Australia. ING Group is active in banking, investment management, life insurance and retirement services across 14 major economies in the Asia Pacific region, employing over 23,000 staff.
With nearly 155,000 employees worldwide, the Allianz Group serves approximately 75 million customers in about 70 countries. On the insurance side, Allianz is the market leader in the German market and has a strong international presence. In fiscal 2009 the Allianz Group achieved total revenues of over 97.4 billion euros. Allianz is also one of the world’s largest asset managers, with third-party assets of 926 billion euros under management at year end 2009.
AXA Group is a worldwide leader in Financial Protection. AXA’s operations are diverse geographically, with major operations in Europe, North America and the Asia/Pacific area.
Zurich Financial Services Group is an insurance-based financial services provider with a workforce of approximately 60,000 people. Founded in 1872, headquartered in Zurich, Switzerland, and serving their customers in more than 170 countries. Aims to become one of the top five global insurers.
Mar
8
AIG and Prudential agree on breakup fee clause
Filed Under AIG, Insurance Company, Life Insurance | 1 Comment
As American Insurance Group’s (AIG) sale of American International Assurance (AIA)to Prudential PLC moves forward, Prudential has agreed to pay American Insurance Group a fee of GB£153 million (US$231 million) should the deal for Asian life insurance unit AIA fall through.
American Insurance Group announced the deal on Monday, March 1st for approximately US$35.5 billion, divided up between US$25 billion in cash, US$8.5 billion in equity and equity-linked securities at nominal value, and US$2 billion in preferred stock. AIG expects the deal to be closed by the end of 2010.
Based on late Friday filings with the U.S. Securities and Exchange Commission (SEC), Prudential has not only agreed to the US$231 million breakup fee, but also payments 0.4% of the outstanding cash value of the deal, possibly over US$100 million per month, should it not be wrapped up by September 1st, 2010. The board members of both Prudential and AIG have given their approval, but the deal still awaits regulatory and shareholder approval.
The deal already has been given the go-ahead by the U.S. Government, which owns nearly 80% of AIG due to a taxpayer funded bailout of the company for US$182.3 billion. While AIG still owes nearly US$130 billion, it plans on using the US$25 billion cash portion of AIA’s sale to Prudential to buy back US$16 billion of preferred interests in the special purpose vehicle holding AIA stocks from the Federal Reserve Bank of New York (FRBNY), and also pay back a further US$9 billion held by the FRBNY Credit Reserve. In total, money paid back from the sale of AIA would make up nearly 20% of the outstanding debt held by taxpayers.
Companies Mentioned:
AIA
AIA is a Hong Kong-based life insurance company doing business across Asia that has been in business since 1919. They service over 20 million policies through 23,000 employees and 300,000 agents throughout markets in Asia, including; Vietnam, Thailand, Taiwan, South Korea, Singapore, Philippines, New Zealand, Malaysia, Macau, Indonesia, India, Hong Kong, Mainland China, Brunei and Australia.
AIG
The American International Group is a leading international insurance organization with operations in more than 130 countries and jurisdictions globally.
Prudential P.L.C.
Prudential has been in the insurance and financial services business since 1848. Today they operate throughout the UK, US and Asia offering international health insurance and retirement planning services, supported by 27,000 employees worldwide.
Mar
4
Sale of AIA to Prudential under watch by HK Insurance Authority
Filed Under AIG, Health Insurance, Hong Kong, Insurance Company | Leave a Comment
The Insurance Authority of Hong Kong is said to be analysing the potential impact to the local insurance market resulting from the combination of AIA and Prudential. Of particular interest, whether this deal could diminish the choices of insurance products and services in the market, and what impact would it have on policyholders of the two insurance companies.
In the view of the regulator, Hong Kong currently enjoys an adequate supply of service providers and wants to make sure that the principle of “fair competition” is maintained after the intended sale. The proposed sale of AIA to Prudential (estimated at US$35.5 billion), is subject to clearing the hurdles imposed by shareholder and regulatory approvals.
Assuming there are no policies surrendered, it is estimated that by combining the market share of both companies they would control approximately 21% of the life insurance market, which may impact the dynamics of competition and cause a wave of redundancies, hurting confidence in the insurance industry in Hong Kong.
Whichever the outcome of this proposed merger, the Insurance Authority of Hong Kong aims to secure that the field remains levelled and the sense of fair competition in this industry is not affected.
Insurance Companies mentioned:
AIA is a Hong Kong-based life insurance company doing business across Asia that has been in business since 1919. They service over 20 million policies through 23,000 employees and 300,000 agents throughout markets in Asia, including; Vietnam, Thailand, Taiwan, South Korea, Singapore, Philippines, New Zealand, Malaysia, Macau, Indonesia, India, Hong Kong, Mainland China, Brunei and Australia.
Prudential has been in the insurance and financial services business since 1848. Today they operate throughout the UK, US and Asia offering international health insurance and retirement planning services, supported by 27,000 employees worldwide.
Mar
3
Lloyds Banking Group Sells 70% Of Insurer Esure
Filed Under Insurance Company, United Kingdom | 1 Comment
Lloyds Banking Group plc (LBG) of the UK has sold 70% of its stake in esure, an Internet-based insurer, for approximately US$289 million. With this sale, LBG intends to regain focus on its core general insurance business through its brands of Halifax and Lloyds TSB.
The buyer of esure’s 70% stake is esure Group Holdings Ltd., a buyout vehicle of esure’s chairman and co-founder, Peter Wood. Using the Internet as the main sales channel, esure offers home, motor, travel and pet insurance.
Lloyds had originally inherited esure after its takeover of home mortgage bank HBOS early last year. The disposal of the 70% stake in esure by LBG forms part of the disposal of UK assets as per a state-aid ruling from EU regulators late in 2009, since Lloyds is now 43% owned by the state.
The impact of this sale on the accounts of LBG is not expected to be material.
Companies mentioned:
Lloyds TSB Group plc was renamed Lloyds Banking Group plc on 19 January 2009, following the acquisition of HBOS plc. This makes us the largest retail bank in the UK with a number of leading market positions. Our goal is to be the best financial services provider in the UK. We believe this means we must build a leadership position not on the basis of scale but on the foundations of reputation and recommendation.
esure was founded in 2000 by Chairman, Peter Wood, to offer competitive insurance cover by using the Internet as a primary sales channel. Mr Wood pioneered the direct selling of insurance over the telephone back in 1985, when he launched Direct Line. With esure, his aim was to go a step further and harness the efficiency of the Internet to give a better deal to responsible drivers and careful homeowners.
Mar
2
AXA Cooperative Insurance Company given Saudi Arabian business license
Filed Under Health Insurance, Insurance Company, Medical Insurance, Middle East | 1 Comment
The Saudi Arabian Monetary Agency (SAMA) has licensed AXA Cooperative insurance Company to carry out its cooperative insurance and reinsurance business in the Kingdom of Saudi Arabia (license number TMN/25/20101).
AXA Cooperative Insurance Company, a Saudi joint stock company, will be AXA Group’s first Cooperative insurance company globally. AXA Cooperative Insurance Company’s initial public offering in Saudi Arabia mid 2009, was 5 times over subscribed; the company currently has a market capitalization of SAR 574,000 (approximately US$153000). AXA Cooperative Insurance Company has already received approval to sell its motor and health insurance in Saudi Arabia and is developing new insurance plans for both individuals and businesses.
Under SAMA’s Cooperative Insurance Regulations, insurance products must be tendered on a “cooperative basis” in a manner consistent both with Islamic Shari’ah and the principles espoused by the articles of association of Tawuniya (previously the National Company for Cooperative Insurance or NCCI). Prior to the enactment and implementation of the Cooperative Insurance Regulations, The National Company for Cooperative Insurance, now Tawuniya was the only insurance company registered to operate in Saudi Arabia.
The cooperative insurance guidelines result in two concrete obligations that AXA Cooperative Insurance Company must conform to, namely that separate bank accounts must be kept for policyholders and shareholders; and that a certain amount of the net surplus from running the insurance operations must be distributed amongst the policyholders.
Companies mentioned:
AXA Group
Headquartered in Paris, France AXA was originally founded in 1816 as Mutuelle de L’assurance contre L’incendie, after acquiring the Drouot Group in 1982 it took on the name AXA. Since that time it has grown into an international insurance business encompassing life & savings, property & casualty, asset management, international insurance and other financial services with over 80 million customers worldwide.
Mar
1
Prudential in negotiations to buy American International Assurance
Filed Under AIG, Insurance Company, Life Insurance | 3 Comments
London-based Financial services company, Prudential P.L.C. is in talks over purchasing AIG’s Asian life insurance business, American International Assurance.
Although the deal has not been finalized yet, it would see Prudential buy American International Assurance or AIA for approximately US$35.5 billion; US$25 billion in cash and US$10.5 billion in stocks.
AIG had been planning on an initial public offering for AIA since late 2009, placing the business in a Special Purpose Vehicle in which the Federal Reserve Bank of New York holds the preferred interests and AIG holding all common interests in AIA. The sale of AIA would pave the way for the largest repayment of the US$180 billion that AIG received in U.S. government bailouts, with the Federal Reserve Bank of New York prepared to receive billions from the sale.
Hong Kong-based AIA has been operating since 1919 and is a major player in the Asian life insurance market with extensive distribution networks in 15 geographical markets and over 20 million policies in-force in the region. The addition of AIA’s business operations in addition to Prudential’s existing 11 million policies would make Prudential a market leader in the Asian life insurance industry.
Companies Mentioned:
AIA
AIA is a Hong Kong-based life insurance company doing business across Asia that has been in business since 1919. They service over 20 million policies through 23,000 employees and 300,000 agents throughout markets in Asia, including; Vietnam, Thailand, Taiwan, South Korea, Singapore, Philippines, New Zealand, Malaysia, Macau, Indonesia, India, Hong Kong, Mainland China, Brunei and Australia.
AIG
The American International Group is a leading international insurance organization with operations in more than 130 countries and jurisdictions globally.
Prudential P.L.C.
Prudential has been in the insurance and financial services business since 1848. Today they operate throughout the UK, US and Asia offering international health insurance and retirement planning services, supported by 27,000 employees worldwide.
Feb
26
Agreement reached between Implantable Provider Group and Blue Cross and Blue Shield of Florida
Filed Under Healthcare, Insurance Company, USA Health Insurance | 2 Comments
An agreement between Implantable Provider Group (IPG) and Blue Cross and Blue Shield of Florida, Inc. (BCBSF) has been reached allowing IPG to serve as the designated implantable device management vendor for the extensive provider network of BCBSF. IPG is one of the world’s leading providers of implanted surgical devices (such as pacemakers).
IPG streamlines the management and delivery of implantable medical devices by working directly with commercial insurance payers, clinical providers and facilities, and medical device manufacturers through its Implantable Device Management (IDM) solution. The IDM solution eliminates the complexity and the financial risks associated with the billing and reimbursement processes for providers, while maintaining patient access to innovative medical therapies that use life-saving and life-enhancing medical devices.
From now on, services such as device coordination, billing, replacement, tracking and other will be handled by IPG to the state-wide ambulatory surgery centre network of Blue Cross Blue Shield of Florida, which has over 4 million health insurance policyholders.
Companies Mentioned
Implantable Provider Group (IPG) works with commercial payors to manage all aspects of high-cost implantable medical devices. Founded in 2004, IPG primarily focuses on large, fast-growth device intensive markets, such as cardiology, neurology, orthopaedic and spine implants. The company’s Implantable Device Management SM solution simplifies the complex procurement, contracting and billing associated with these devices, thereby streamlining the process and normalizing costs for all parties, while also delivering many valuable ancillary capabilities. Implantable Device Management also offers benefits for health care providers and manufacturers.
Blue Cross and Blue Shield of Florida is the oldest and largest health plan provider in the state of Florida. The Blue Cross and Blue Shield system of plans consists of 39 independent and locally operated Blue plans with a total national enrolment of more than 100 million at year-end 2008, which equals one in three Americans. Blue Plans have experienced 14 consecutive years of positive enrolment.
Feb
24
American International Group May be on the Road to Recovery
Filed Under AIG, Income Protection, Insurance Company, Life Insurance | 3 Comments
American International Group may be on the road to recovery 17 months after the company received a US$ 182.3 Billion bailout from the American government at the peak of the global financial crisis of 2008/2009.
AIG, whose failure threatened to collapse the USA’s economy, has improved its means to repay the bailout which it received through increased sales in the company’s property-casualty business. Property-Casualty contributed to a third of AIG’s revenue in the three quarters following the opening shots of the great recession. In conjunction with rising Life and Retirement product sales, the mainstay of AIG’s offerings, in the third quarter of 2009 the company looks well placed to pull out of what many industry analysts are referring to as a “death spiral”.
Managing Director of Nomura Securities International, David Havens, said “There are clear signs that AIG has pulled out of what could have been a death spiral.” Nomura Securities was a key player during the Global Financial Crisis, taking over the European and Asian business of defunct banking giant Lehman Brothers.
Industry observers are forecasting a positive outlook for AIG, and point to recently released third quarter results that see the company moving more in line with industry averages, rather than continuing poor performance. During the fourth quarter of 2008, the first full reporting period after they received their bailout, AIG posted Property-Casualty premiums sales of US$ 7.1 billion. This figure has risen during 2009 with the property-casualty arm posting sales of US$ 7.7 billion in the first quarter, US$ 7.9 billion in the second quarter, and US$ 8.1 billion in the third.
Life insurance however, may be slower to recover. During the fourth quarter of 2008, AIG posted Life insurance revenues of US$ 15.2 billion. The first quarter of 2009 saw British clients abandon the firm due to a perceived lack of confidence, and consequently saw Life insurance sales drop to US$ 14.5 billion. The life insurance arm of AIG continued to struggle in the second quarter of 2009 with sales down to US$ 13 billion, but a recent reversal of the downward trend, and an increase in Life insurance sales, up to US$13.7 billion in the third quarter, means that stability may be returning to this beleaguered company.
In other AIG news, AIG Star Life Insurance Co. Ltd, a life insurance subsidiary located in Japan, has formed a partnership with Orix Corp. to sell annuity products. Aiming to enhance AIG Star’s customer base, the two companies will pursue a venture which will see them jointly marketing annuity products to Orix Corp’s existing clients.
Companies Mentioned
The American International Group is a leading international insurance organization with operations in more than 130 countries and jurisdictions globally
A wholly owned subsidiary of Nomura Holdings, Nomura Securities is a finanical services company in addition to being a global investment bank. Based in Tokyo, Nomura Securities has approximately 26,000 staff worldwide.
Feb
23
BUPA Updates Online Intermediary System
Filed Under BUPA, Health Insurance, Insurance Company, Medical Insurance | 2 Comments
In an effort to make things easier for intermediaries selling and Bupa’s individual protection products, Bupa has updated their online trading system.The enhanced system allows intermediaries interact with Bupa’s products within the Bupa Extranet system in more a more in-depth manner, streamlining online administration of policies.
The increased functionality permits intermediaries to customize the product options to better suit their customers. Intermediaries may now also upload multiple product applications at once, make modifications on the policy all the way up until the policy is placed on risk, and set up single or multiple start dates and direct debits for clients.
The director of Bupa Health Assurance, Steve Payne, said that “Intermediary feedback has helped us to design a system which enables them to access our products in a menu-style format making administration simpler, quicker, flexible and more convenient.”
Companies Mentioned:
BUPA is an international health insurance company that provides health insurance for individuals and companies all over the world. This company has offices on three continents and over 7 million customers’ world wide. As a provident association BUPA has no shareholders, because of this it uses its profits to invest in healthcare and medical facilities around the world.